“Whistleblower Alert Scrutinized,” The Wall Street Journal, November 24, 2017 B6. A year ago, the CEO gets a letter from an employee saying the company is committing fraud by overstating some metrics. Investors are later told the allegations are without merit, and invest $500 million. Now the investors are suing. We’re told that that suit is without merit, even though it looks like some metrics were overstated.
How do you handle continuing to operate your business after a whistleblower puts you on notice of potential wrongdoing? What audiences do you need to communicate with? Shareholders, government regulators, lenders, employees, others? What can you say without stumbling over an inconvenient truth or two?
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